ASSIGNMENT

Course Code : MMPM-006

Course Title: Marketing Research

Assignment Code : MMPM-006/TMA/JAN/2025

Coverage : All Blocks

Note: Attempt all the questions and submit this assignment to the coordinator of
your study centre. Last date of submission for January 2025 session is 30th April,
2025 and for July 2025 session is 31st October, 2025.

1. Discuss the role of new technologies in marketing research.

2. Discuss the main sources of primary and secondary data used in marketing
research.

3. Data about a firm’s advertising expenditure and the corresponding sales figure
over a period of five months are given in the following table.

Month 1 2 3 4 5
Advertising Expenditure 8 9 8 9 10
(Thousand Rupees)
Sales (Thousand Rupees) 12 13 14 15 16
Estimate the linear regression of sales on the advertising expenditure and
Hypothesis Testing interpret the results

4. What are the areas of application of big data in marketing research? Discuss.

5. Write short notes on following: a. Importance of Research Design b. Conjoint

analysis c. Logistic Regression analysis
 ASSIGNMENT

Course Code : MMPM-006

Course Title: Marketing Research

Last date of submission for January 2025 session is 30th April, 2025 and for July
2025 session is 31st October, 2025.

1. Discuss the role of new technologies in marketing research.

New technologies have revolutionized marketing research by enhancing data

collection, analysis, and decision-making processes. Here’s a detailed discussion
of their role:

1. Big Data & Analytics

 Companies use big data analytics to process large volumes of customer

data from various sources, including social media, website interactions, and
purchase histories.
 Advanced analytics tools help in identifying consumer trends, preferences,
and behavior patterns.

2. Artificial Intelligence (AI) & Machine Learning (ML)

 AI-driven tools assist in predictive analytics, sentiment analysis, and

customer segmentation.
 Machine learning algorithms analyze past customer interactions to forecast
future buying behavior and personalize marketing strategies.

3. Social Media & Sentiment Analysis

 Social media platforms serve as rich sources of consumer opinions, allowing

businesses to track brand perception.
 Sentiment analysis tools scan customer reviews, posts, and comments to
gauge public opinion.

4. Automation & Chatbots

 Automated surveys and chatbots collect customer feedback in real-time.

  AI-powered chatbots provide personalized responses and improve
customer engagement.

5. Neuromarketing & Biometrics

 Technologies like eye-tracking, facial recognition, and EEG

(electroencephalogram) scans measure customer emotions and responses
to advertisements.
 These tools help in designing more engaging marketing campaigns.

6. Mobile & Location-Based Marketing

 GPS tracking and geofencing allow businesses to send personalized

promotions based on a customer’s location.
 Mobile surveys and feedback apps improve customer participation in
research.

7. Blockchain for Data Security

 Blockchain technology enhances transparency and trust in marketing

research by ensuring secure and tamper-proof data collection.

8. Internet of Things (IoT)

 IoT devices generate real-time consumer data that helps businesses

understand usage patterns and improve products.
 Smart devices collect insights into customer preferences, helping in product
development and marketing strategies.

Conclusion

New technologies have significantly improved marketing research by making data

collection faster, analysis more accurate, and customer insights deeper.
Companies that leverage these technologies can make informed decisions, create
better marketing campaigns, and enhance customer experiences.

2. Discuss the main sources of primary and secondary data used in marketing
research.
Marketing research relies on two main types of data sources: primary data and
secondary data. Each has its own significance, methods of collection, and
applications.

1. Primary Data

Primary data refers to firsthand information collected directly from respondents

for a specific research purpose. This data is original, current, and tailored to meet
the research objectives.

Main Sources of Primary Data

1. Surveys & Questionnaires

o Conducted online, via telephone, or in person.
o Used to gather customer preferences, opinions, and buying behavior.
2. Interviews
o Can be structured (predefined questions) or unstructured (open
discussions).
o Provide in-depth insights into customer attitudes and decision-
making processes.
3. Focus Groups
o Small groups of selected individuals discuss a product or service.
o Helps in understanding customer perceptions, preferences, and
potential improvements.
4. Observations
o Researchers observe consumer behavior in stores, websites, or other
settings.
o Eliminates bias from self-reported data.
5. Experiments & Test Marketing
o Products or services are tested in selected markets before a full-scale
launch.
o Helps assess customer reactions and fine-tune marketing strategies.

2. Secondary Data

Secondary data refers to information that has already been collected and
published for other purposes but can be used for marketing research.

Main Sources of Secondary Data

 1. Internal Company Records
o Sales reports, customer databases, website analytics, and financial
statements.
o Useful for analyzing past trends and customer behavior.
2. Government Publications
o Census reports, economic surveys, and trade statistics.
o Provide demographic and economic data useful for market
segmentation.
3. Industry Reports & Market Research Firms
o Reports from firms like Nielsen, Gartner, or IBISWorld.
o Offer competitive intelligence and industry trends.
4. Academic Research & Journals
o Business school research, white papers, and marketing journals.
o Provide theoretical insights and case studies.
5. Media & Online Sources
o Social media trends, blogs, news articles, and company websites.
o Useful for real-time market sentiment and competitor analysis.
6. Trade Associations & Chambers of Commerce
o Provide industry-specific reports, market trends, and networking
opportunities.

Conclusion

Both primary and secondary data play a crucial role in marketing research.
Primary data is more accurate and specific but expensive and time-consuming to
collect, while secondary data is cost-effective and readily available but may not
always be relevant or up to date. A combination of both is often used to gain
deeper market insights and make informed business decisions.

3. Data about a firm’s advertising expenditure and the corresponding sales

figure over a period of five months are given in the following table.

Month 1 2 3 4 5
Advertising Expenditure 8 9 8 9 10
(Thousand Rupees)
Sales (Thousand Rupees) 12 13 14 15 16
Estimate the linear regression of sales on the advertising expenditure and
Hypothesis Testing interpret the results

To estimate the linear regression equation of sales (YYY) on advertising

expenditure (XXX), we will follow these steps:

Step 1: Define the Regression Model

The simple linear regression equation is:

Y = a + bX + e

where:

 Y = Sales (in thousand rupees)

 X = Advertising expenditure (in thousand rupees)
 a = Intercept (constant term)
 b = Slope coefficient (measures the impact of advertising on sales)
 e = Error term

Step 2: Compute the Regression Coefficients

The slope b and intercept a are given by the formulas:

𝑛∑XY−∑X ∑Y
b=
n∑X2 −(∑X)2

∑Y−b∑X
a=
𝑛

where:𝒏

 n = 5 (number of months)
 ∑ X , ∑ Y, ∑ X Y, and ∑X² will be calculated.

Step 3: Hypothesis Testing for the Slope (b)

We test whether advertising expenditure significantly impacts sales using the null
hypothesis:

H0:b=0(No impact of advertising on sales)

H1:b≠0(Advertising has an effect on sales)

The test statistic is calculated as:

𝑏
t=
𝑆𝐸b

where SEb is the standard error of b.

We will now calculate the regression equation and hypothesis test results using
Python.

Regression Equation

The estimated linear regression equation is:

Ŷ = 1.43+1.43X

where:

 The intercept a=1.43 suggests that if advertising expenditure were zero, the
estimated sales would be 1.43 thousand rupees.
 The slope b=1.43 implies that for every 1 thousand rupees increase in
advertising expenditure, sales increase by 1.43 thousand rupees on
average.

Hypothesis Testing Results

 t-statistic = 2.00
 p-value = 0.139

At a 5% significance level (α=0.05), the p-value (0.139) is greater than 0.05,

meaning we fail to reject the null hypothesis (H0:b=0). This suggests that
advertising expenditure does not have a statistically significant impact on sales in
this small sample.

Conclusion

 While the regression suggests a positive relationship between advertising

expenditure and sales, the impact is not statistically significant based on
this dataset.
  Increasing the sample size may provide better statistical evidence.
 Additional variables (e.g., product quality, market conditions) might also
influence sales and should be considered for a more accurate model.

4. What are the areas of application of big data in marketing research? Discuss.

Areas of Application of Big Data in Marketing Research

Big data has transformed marketing research by enabling businesses to analyze

vast amounts of structured and unstructured data for better decision-making. The
key areas where big data is applied in marketing research include:

1. Customer Behavior Analysis

 Tracks online and offline customer interactions.

 Helps in understanding purchase patterns, preferences, and engagement.
 Personalizes marketing campaigns based on customer journey insights.

2. Market Segmentation and Targeting

 Uses demographic, psychographic, and behavioral data to classify

customers.
 Enables hyper-personalized marketing campaigns.
 Improves customer experience by delivering relevant content and offers.

3. Sentiment Analysis and Social Media Monitoring

 Analyzes customer opinions, emotions, and sentiments from social media,

blogs, and reviews.
 Helps brands measure brand perception and customer satisfaction.
 Identifies emerging trends and potential brand crises.

4. Predictive Analytics and Sales Forecasting

 Uses historical sales data to predict future demand.

 Helps optimize inventory management and pricing strategies.
 Identifies trends in consumer spending and preferences.

5. Customer Retention and Loyalty Programs

  Tracks customer interactions to identify churn risks.
 Enhances loyalty programs by offering personalized rewards.
 Analyzes customer lifetime value (CLV) to improve retention strategies.

6. Advertising and Digital Marketing Optimization

 Analyzes click-through rates, engagement levels, and conversion rates.

 Improves ad placement, budget allocation, and return on investment (ROI).
 Enables real-time bidding (RTB) for programmatic advertising.

7. Competitive Intelligence and Market Trends

 Monitors competitor pricing, product launches, and market trends.

 Provides insights for strategic decision-making and innovation.
 Helps businesses adapt quickly to changing market dynamics.

8. Pricing Strategies and Dynamic Pricing

 Uses machine learning algorithms to adjust prices based on demand and

competition.
 Implements personalized pricing based on customer history and behavior.
 Helps optimize discount strategies and maximize revenue.

9. Product Development and Innovation

 Analyzes customer feedback to improve existing products.

 Identifies gaps in the market for new product development.
 Tests new concepts through A/B testing and prototype analysis.

10. Omnichannel Marketing and Customer Experience

 Integrates data from online and offline sources for a seamless customer
experience.
 Enhances personalization across websites, emails, mobile apps, and in-store
visits.
 Provides businesses with a 360-degree view of the customer journey.

Conclusion
Big data plays a crucial role in marketing research by enabling businesses to make
data-driven decisions, enhance customer engagement, and improve marketing
efficiency. Companies that leverage big data effectively can gain a competitive
edge by understanding their customers better, predicting market trends, and
optimizing their marketing strategies.

5. Write short notes on following:

a. Importance of Research Design
b. Conjoint analysis
c. Logistic Regression analysis

a. Importance of Research Design

Research design is the blueprint for conducting a study, ensuring that data
collection and analysis are systematic and reliable. Its importance includes:

 Clarity of Objectives: Defines the purpose and scope of the research.

 Data Accuracy: Ensures data collection methods minimize bias and errors.
 Efficient Resource Utilization: Helps optimize time, cost, and effort in
research.
 Comparability: Allows results to be replicated and compared in different
contexts.
 Decision-Making Support: Provides a structured approach to solving
business problems and formulating marketing strategies.

b. Conjoint Analysis

Conjoint analysis is a statistical technique used in marketing research to measure

customer preferences for product features. It helps in:

 Product Design: Identifies which product attributes (e.g., price, features,

brand) are most valued by customers.
 Pricing Strategy: Determines willingness to pay for specific features.
 Market Segmentation: Differentiates customer groups based on
preference patterns.
 Decision-Making: Assists businesses in optimizing product offerings to
maximize consumer satisfaction.
Example: A smartphone company uses conjoint analysis to determine if
customers prefer battery life over camera quality.

c. Logistic Regression Analysis

Logistic regression is a statistical method used to predict a categorical dependent

variable (e.g., Yes/No, Buy/Not Buy) based on independent variables. It is widely
used in marketing research for:

 Customer Purchase Prediction: Analyzes factors influencing whether a

customer will buy a product.
 Customer Churn Analysis: Identifies factors leading to customer attrition.
 Market Segmentation: Classifies customers into different behavioral
groups.
 Campaign Effectiveness: Determines the impact of marketing campaigns
on customer response.

Unlike linear regression, logistic regression is used when the outcome is binary
(e.g., success/failure), making it useful for classification problems in marketing
research.